Buenos Aires.
Buenos Aires experiences highest yearly occupancy level since 2012; Rio de Janeiro performance somewhat mixed amid uncertain economic climate. Mexico’s hotel industry reported mixed performance results during 2018, according to data from STR.
LONDON – Hotels in the Central/South America region reported positive, but inflation-affected performance results in 2018, according to data from STR.
U.S. dollar constant currency, 2018 vs. 2017
Central/South America
- Occupancy: +1.9% to 57.4%
- Average daily rate (ADR): +21.8% to US$118.89
- Revenue per available room (RevPAR): +24.1% to US$68.25
STR analysts note that ADR and RevPAR figures were pushed upward due to inflation in key countries throughout the year.
Local currency, 2018 vs. 2017
Buenos Aires, Argentina
- Occupancy: +1.0% to 69.7%
- ADR: +88.4% to ARS3,914.77
- RevPAR: +90.3% to ARS2,727.55
Buenos Aires experienced its highest yearly occupancy level since 2012. STR analysts attribute that development to a large number of events held in the market in 2018, such as the WTTC Global Summit (18-19 April), the Youth Olympic Games (6-18 October) and TravelMart Latin America (19-21 September). The significant jump in rates was due to the inflation of the Argentine peso.
Rio de Janeiro
- Occupancy: +9.9% to 51.2%
- ADR: +0.4% to BRL363.54
- RevPAR: +10.4% to BRL186.10
Yearly occupancy increased in the market for the first time since 2011. However, STR analysts note that the absolute value in the metric remained low due to lost tourism that came as a result of the economic crisis and security concerns in Brazil. Supply decreased 4.2% as a lack of consistent corporate and leisure business made it difficult for some properties to operate.
Mexico 2018 hotel performance
Mexico’s hotel industry reported mixed performance results during 2018, according to data from STR.
Compared with 2017:
- Occupancy: -1.3% to 63.1%
- Average daily rate (ADR): -0.6% to MXN2,300.04
- Revenue per available room (RevPAR): -1.9% to MXN1,450.53
Although in line with previous year’s averages, STR analysts note that the absolute occupancy was the lowest for any year in the country since 2014. The dip in occupancy came as a result of healthy supply growth (+2.4%) and softened demand (+1.1%) that was likely influenced by political and economic uncertainty, along with safety concerns and U.S.-issued travel advisories.
Among STR’s defined markets for the country, Mexico Northeast registered the largest increases in each of the three key performance metrics: occupancy (+5.0% to 65.8%), ADR (+4.5% to MXN1,272.75) and RevPAR (+9.7% to MXN837.86). Based on number of hotels, the largest cities included in this market are Monterrey, Saltillo and Tampico.
Mexico City experienced the second-highest rise in occupancy (+3.0% to 69.2%), which resulted in the only other jump in RevPAR (+4.0% to MXN1,706.93).
Mexico Central North reported the largest drop in RevPAR (-4.8% to MXN1,037.37), due primarily to the second-steepest decline in occupancy (-3.6% to 61.0%). This market includes Guadalajara and Puerto Vallarta.
Mexico Central South saw the largest decrease in occupancy (-3.9% to 52.8%) and the second-largest drop in RevPAR (-3.1% to MXN580.45). The highest hotel counts in this market belong to Oaxaca and Acapulco.
The Yucatan Peninsula posted the only other decline in ADR (-0.6% to MXN3,691.76).
Caribbean 2018 hotel performance
The Caribbean hotel industry reported lower occupancy, but record-breaking average daily rate (ADR) during 2018, according to data from STR.
Compared with 2017:
- Occupancy: -1.1% to 65.2%
- Average daily rate (ADR): +1.7% to US$207.61
- Revenue per available room (RevPAR): +0.6% to US$135.46
The absolute occupancy level was the lowest in the Caribbean since 2012, but the ADR value was the highest for any year on record in the region.
“Markets affected by the hurricanes of 2017 are recovering at a pace faster than what we’ve seen historically with previous hurricanes, such as Katrina and even Harvey,” said Rico Louw, STR’s client account manager. “Investment in the region is strong, with nearly 100 projects in the pipeline that are expected to yield an additional 22,000 rooms in the next three to five years. Continued performance growth is projected for U.S. hotel industry, and the Caribbean hopes to mirror that trend.”
In absolute values, March was the Caribbean’s top-performing month for occupancy (74.0%) and RevPAR (US$190.78), while December produced the highest ADR level (US$262.97).
September was the lowest month of the year for occupancy (48.9%), ADR (US$153.60) and RevPAR (US$75.08).
STR’s census database shows more than 1,900 hotels and 250,000 rooms in the Caribbean.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
